On Tuesday, Vimeo Inc. (NASDAQ:VMEO) advanced slightly after reporting a significant rise in its monthly revenue. The company said its top line grew by 26% in November compared to the same month a year ago.
Vimeo’s revenue growth was driven by an 11% subscriber growth during the month, while revenue per user increased by 12% from the same month a year ago. However, the data also shows decelerating growth compared to October numbers.
Vimeo reported a 29% revenue growth compared to October in 2020, while subscribers increased by 12%, with average revenue per user ticking higher by 14% Y/Y.
Is it too risky to buy Vimeo stock?
From an investment perspective, Vimeo shares trade at a steep P/B ratio of 7.40. Therefore, the stock may not be an attractive option for bargain hunters.
On the other hand, analysts expect its earnings per share to grow by 33% this year, before increasing by a further 3.2% next year.
Therefore, the stock may gain the interest of growth investors.
Technically, Vimeo shares seem to be trading within a descending channel formation in the intraday chart. As a result, the stock has plummeted deep into the oversold conditions of the 14-day RSI.
Therefore, investors could target potential technical rebounds at about $19.53, or higher at $22.43. On the other hand, if the stock continues to fall, Vimeo could find support at about $15.82, or lower at $13.02.
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